Oman hikes fuel prices by 50 per cent in five months

Muscat: Consumers will have to pay around 50 per cent per litre extra for regular petrol this month compared to the price before regulation on fuel was lifted in January.
Read here: Fuel prices in Oman to rise in June
Prior to the government lifting the regulation, the price of regular petrol in Oman was 114 baisas, while for super grade it was 120 baisas, and for diesel it was 146 baisas.
Now, just five months later, consumers have to pay around 49 per cent extra per litre of regular petrol, 50 per cent extra for super grade, and 26 per cent extra for diesel. Oman had deregulated its oil prices on January 15 this year as part of the austerity measures aimed at plugging the deficit.
In June, the price of revised regular petrol (M90) will be 170 baisas per litre, super graded (M95) will be 180 baisas, and diesel will be 185 baisas, according to a notice uploaded by the ministry on its official twitter handle.
On January 15, the price of super unleaded petrol was revised from 120 baisas to 160 baisas per litre. For regular it was raised from 114 baisas to 140 baisas per litre and for diesel, it was made raised to 160 baisas from 146 baisas per litre.
Meanwhile, as compared to May, consumers will have to pay 14 per cent extra for regular petrol per litre in June.
According to the new price, consumers will have to pay 11 per cent extra for both super grade petrol and diesel as compared to what they were paying in May.
“The rise of the fuel price is hitting us hard. We all are small time businessmen who depend on hiring pick-ups and small trucks on a daily basis to transport our goods. Every month with the price going up, we are forced to pay more to the transporters,” Kabeer CV, a wholesale vegetable distributor in Muscat, said.
A marketing executive in Muscat said that his company officials find it hard to pay the fuel cost to him as the prices keep rising every month.
“A lot of travel is needed for my job. The company pays my fuel charge. But, nowadays, they seem reluctant when they have to bear the extra cost as the prices keep rising,” Suresh Kumar S, the marketing official, added.
Fuel subsidies for 2015 were estimated to be OMR580 million, and with deregulation the government will be able to save that money, which is expected to be of great help in reducing the deficit.
According to the Ministry of Oil and Gas, the crude price on Tuesday was $43.26 per barrel.